Iraq asks foreign cos to raise oil output, exports

BAGHDAD, Aug 23, (RTRS): Iraq on Tuesday asked foreign oil companies to increase oil output and exports, as Baghdad joined those spotlighting production potential ahead of a major energy gathering late next month.

Oil Minister Jabar Ali al-Luaibi, who took up his post this month, met in Baghdad with oil companies operating in Iraq.

“The minister reaffirmed support for the operations of international companies in order to increase the production and export rates of crude oil and natural gas,” ministry spokesman Asim Jihad said.

The meeting aims at “opening a new chapter in cooperation” with the foreign companies, he said.

Iraq is OPEC’s second-largest producer after Saudi Arabia and an increase in its output, alongside that of Iran, could aggravate the global oil glut and complicate discussions between OPEC and nonopec producers on output limits to prop up prices.

OPEC members will meet on the sidelines of the International Energy Forum (IEF), which groups producers and consumers, in Algeria from Sept 26-28.

Luaibi on Monday renewed Iraq’s demand to review contracts with the companies to cut the fees that they receive when crude prices fall.

The companies say those fees are already low given the investments and challenges required to raise output at ageing fields in the southern region.

Iraq produces about 4.6 million barrels per day (bpd) of crude and this year started exporting liquefied petroleum gas and natural gas condensates. Total gas exports so far this year reached 12,000 metric tons for LPG and more than 100,000 cubic meters (3.5 million cubic feet) for condensates.